In the 19th century, the cool climate of the Macedon region was thought to provide a perfect environment for patients suffering tuberculosis. In 1899 a sanatorium was opened a short distance down the Mount from the lake in a building previously used as a private hospital. The lake was built to supply water to a new, larger sanatorium which due to opposition and lack of funding was never built. The original sanatorium closed in 1910 and was later destroyed by fire.

Now, this is a great spot for a picnic. The picnic area has tables and a fireplace.